Cornell Chronicle

Mankand says:

“The near-zero interest rate environment, emergency lending, rapid increase in the money supply, and extraordinary federal account deficits have combined to help create weakness in the dollar. 

“If this trend accelerates, the price of imports should continue to rise and eventually impact consumer prices. According to the latest Bureau of Labor Statistics report, import prices rose 0.9% in August, well above the 0.5% estimate, while the 0.7% rise initially reported for July was revised upward to 1.2%. 

“The data shows that the clock is ticking, and that the Federal Reserve could be forced to focus on putting out an inflationary fire sooner than later.”

Wolfolds says:

“The Federal Reserve’s reaffirmation of the 2012 Monetary Policy Strategy strongly indicates that the Fed intends to allow (and perhaps even encourage) inflation rates higher than we have seen in the past 15 years, with a goal of achieving a long run 2% average inflation rate. The Fed indicated that this policy is ‘most consistent over the longer run with the Federal Reserve’s statutory mandate.’

“A higher average permitted inflation rate, besides reassuring markets that it would not slam on the brakes if inflation briefly exceeded 2%, would provide the Fed with flexibility in responding to downturns. The higher permitted inflation rate would tend to increase the average federal funds rate. The Fed could then be able to effectively respond to economy downturns by lowering that rate when needed, something unlikely to work at the current low funds rate. 

“The recent massive government stimulus spending may well lead to higher inflation in the near future; the Fed’s statement helps to clarify market expectations about its planned response to moderate, and even sustained, levels of inflation above the 2% level.”

Abulof says:

“As the genius businessman he prides himself to be, Trump knows how to cut his losses. With the Palestinians refusing to embrace Israel while it annexes substantial parts of the West Bank, Trump’s ‘deal of the century’ is all but dead. The ‘deal of the day’ will have to do – making peace between Israel and its two neighbors in calling codes: UAE 971, Israel 972, Bahrain 973. President Trump, Prime Minister Netanyahu and the two monarchs are obvious bedfellows, with joint regional interest of combating political Islam, whether Sunni or Shiite.

“While the Gulf leaders seek to gain favors with the American administration before a new one may step in, Trump and Netanyahu want to leave their mark, and save their skin, the former before the election, the latter leading his country to a COVID-19 chaos and facing an impending trial for corruption. The pact demonstrates that the ‘democratic peace’ theory – democracies rarely fight each other – has an evil twin: the ‘non-democratic peace’ theory – illiberal leaders often back each other.”